Jet fuel prices keep falling as crude spikes, but airlines miss the full benefit
Jet fuel spot prices eased a further 1-6% last week, despite a 7% surge in the underlying crude oil spot price.
Jet fuel prices fell 4.3% in New York, 4.0% at the US Gulf Coast, 5.9% in Los Angeles, 0.6% in Amsterdam and -3.3% in Singapore.
Over the past 12 months, jet fuel prices are down 60-61%, whereas the spot price of oil (WTI) has fallen by 59%.
Daily jet fuel prices (kerosene, cents per gallon) at New York, US Gulf Coast, Los Angeles, Amsterdam, Singapore vs Crude Spot price (WTI, USD per barrel): 24-Feb-09 to 03-Mar-09
|
|
24-Feb-09 |
25-Feb-09 |
26-Feb-09 |
27-Feb-09 |
02-Mar-09 |
03-Mar-09 |
one week
|
12 month
|
|---|---|---|---|---|---|---|---|---|
|
New York Harbor |
125.38 |
128.27 |
132.52 |
130.77 |
118.45 |
120.05 |
-4.3% |
-60.0% |
|
U.S. Gulf Coast |
120.38 |
123.27 |
127.52 |
126.52 |
113.2 |
115.55 |
-4.0% |
-61.0% |
|
Los Angeles |
124.88 |
128.4 |
131.77 |
130.52 |
117.2 |
117.55 |
-5.9% |
-61.3% |
|
120.41 |
122.82 |
126.68 |
126.75 |
116.48 |
119.73 |
-0.6% |
-60.3% |
|
|
115 |
118.1 |
122.62 |
122.14 |
118.81 |
111.19 |
-3.3% |
-60.4% |
|
|
WTI Spot |
38.86 |
41.64 |
43.18 |
44.15 |
40.07 |
41.57 |
7.0% |
-59.4% |
Daily jet fuel prices (kerosene, cents per gallon) at New York, US Gulf Coast, Los Angeles, Amsterdam, Singapore: 25-Nov-08 to 03-Mar-09
In its Financial Health Monitor released this week, IATA stated crude oil prices appear to have formed a floor just above USD40 a barrel, following OPEC's large output cuts in Dec-2008.
The industry body stated, "as falling demand eases refinery bottlenecks the ‘crack spread' has narrowed to more normal levels and jet fuel prices have fallen towards USD50 a barrel". However, IATA noted that many airlines have part of their fuel bill locked into higher prices through their fuel hedging and hedging losses were a "large part of the larger than expected reported Q4 losses".